The ACT Government has introduced a new Bill into the Assembly that would establish a new levy on short-term rental accommodation (STRA) bookings made from 1 July 2025.
The levy, which will apply to bookings of not more than 28 days, was announced in the 2024-25 Budget.
Other jurisdictions, including Victoria and Tasmania, have introduced or announced similar levies.
This will be set at a rate of 5 per cent of the total consideration paid for a STRA booking that was made, arranged or facilitated by a booking service.
The levy will apply to un-hosted accommodation booked via a booking service. Booking service providers are responsible for paying the levy.
"We expect that this Bill may have a modest impact on long-term rentals being available to local renters, rather than short term visitors," said Treasurer Chris Steel.
"Short stay platforms will remain an important part of the visitor economy, but this strikes a fairer balance between the costs of operating hotel, motel and other accommodation which is subject to reasonable regulation and often payroll and other taxes.
"The revenue generated goes to delivering Canberra's great local tourism and events as well as other critical Government services."
The ACT Government has consulted with key stakeholders from the short-term rental accommodation industry, including peak industry bodies representing owners of short-term rental accommodation and booking service providers.
The levy does not apply to hosted accommodation, such as where the occupant of the property lists a single room and resides in the property with the guest, or accommodation booked directly with a property owner.
Hotels, motels, serviced apartments, caravan parks, camping grounds and hostels are also excluded from the levy.
